THE Policy Monitoring and Research Centre (PMRC) has urged Government to restructure operations of State Owned Enterprise (SOEs) to make them economically viable.

In a recent policy analysis statement, PMRC called for the restructuring and development of new strategies for the SOEs to compete favourably with private entities.

“There is need to undertake restructuring and develop a strategic industrial development plan to guide Zambia’s development goal of being a ‘prosperous middle-income industrial nation by 2030’,” the statement said.

With the Industrial Development (IDC) in offing, PMRC feels there is need to address historical inefficiencies such as ministerial interference and patronage as well as lack of strategic direction which it observed that resulted in poor management in most of the SOEs.

It called for thorough monitoring and evaluation in order to address weak, ineffective, disorganised boards of SOEs in the country.

The statement further said by doing so financial and physical asset losses could be reduced thereby contributing to economic development.

It added that this would restore economic power to the Zambian Government while encouraging foreign re-investment which will in turn redress income inequalities as well as develop local human resources as an economic catalyst.

The concept of IDC was first introduced in Zambia following its independence to steer economic development through management of Zambia’s resources.

However in the last 20 years, the holding body was disbanded due to privatisation and mismanagement of subsidiary companies.

It hinted that although economic growth had been positive in the last decade, with real Gross Domestic Product (GDP) averaging six per cent, little economic transformation had occurred.

By JUDITH NAMUTOWE -
THE Zambezi River Authority (ZRA) has said the feasibility study on the Batoka Hydropower Station has been reviewed.
ZRA chief executive officer Munyaradzi Munodawafa said in an interview yesterday that the review on the demo structure, power house and capacity output on the project had been completed.
Mr Munodawafa said the authority was currently waiting for the second phase of the Environmental Impact Assessment (EIA).
‘‘We have reviewed the Batoka Hydropower Station feasibility study. The study on the demo structure, power house structure and the capacity output on the project has been completed,’’ Mr Munodawafa said.
He said the finalisation of the study and the EIA was expected to be completed in the first quarter of 2015.
Mr Munodawfa said consultants were currently working on other processes and thereafter the project committee which include senior Government officials , utilities and ZRA would visit the project this month.
He said once all these processes were completed, ZRA would then be able to select the developer for the project, after which the authority would be able to come up with the actual value of the project.
Zambia and Zimbabwe signed a Memorandum of Understanding (MoU) to team up and start the Batoka hydropower project which is estimated to cost about US$4 billion.
The agreement was signed during the council of ministers held at Kariba in Siavonga recently.